Expenditures for concentrates constitute our largest individual
raw material cost. We buy various soft drink concentrates from
PepsiCo and other soft drink companies and mix them with other
ingredients in our plants, including water, carbon dioxide and
sweeteners. Artificial sweeteners are included in the
concentrates we purchase for diet soft drinks. Additionally, we
buy juice concentrates for our Sandora, Sadochok and Toma juice
brands.

In addition to concentrates, we purchase sweeteners, glass and
PET bottles, aluminum cans, closures, paperboard cartons,
bag-in-box
packages, syrup containers, other packaging materials and carbon
dioxide. We purchase raw materials and supplies, other than
concentrates, from multiple suppliers. PepsiCo acts as our agent
for the purchase of several such raw materials (see
Related Party Transactions in Item 7 and
Note 22 to the Consolidated Financial Statements for
further discussion of PepsiCos procurement services).

A portion of our contractual cost of cans, PET bottles and
sweeteners is subject to price fluctuations based on commodity
price changes in aluminum, PET resin, corn and sugar. We may
enter into firm price commitments for future purchases of
commodities that enable us to establish a fixed purchase price
within a defined time period. We may also periodically use
derivative financial instruments to hedge the price risk
associated with anticipated purchases of commodities.

The inability of suppliers to deliver concentrates or other
products to us could adversely affect operating results. None of
the raw materials or supplies in use is currently in short
supply, although factors outside of our control could adversely
impact the future availability of these supplies.

Raw Materials and Manufacturing

Expenditures for concentrates constitute our largest individual raw material cost. We buy various soft drink concentrates from PepsiCo and other soft drink companies and mix them with other ingredients in our plants, including water, carbon dioxide and sweeteners. Artificial sweeteners are included in the concentrates we purchase for diet soft drinks. Additionally, we buy juice concentrates for our Sandora, Sadochok and Toma juice brands.

In addition to concentrates, we purchase sweeteners, glass and PET bottles, aluminum cans, closures, paperboard cartons,bag-in-box packages, syrup containers, other packaging materials and carbon dioxide. We purchase raw materials and supplies, other than concentrates, from multiple suppliers. PepsiCo acts as our agent for the purchase of several such raw materials (see Related Party Transactions in Item 7 and Note 22 to the Consolidated Financial Statements for further discussion of PepsiCos procurement services).

A portion of our contractual cost of cans, PET bottles and sweeteners is subject to price fluctuations based on commodity price changes in aluminum, PET resin, corn and sugar. We may enter into firm price commitments for future purchases of commodities that enable us to establish a fixed purchase price within a defined time period. We may also periodically use derivative financial instruments to hedge the price risk associated with anticipated purchases of commodities.

The inability of suppliers to deliver concentrates or other products to us could adversely affect operating results. None of the raw materials or supplies in use is currently in short supply, although factors outside of our control could adversely impact the future availability of these supplies.

Expenditures for concentrates constitute our largest individual
raw material cost. We buy various soft drink concentrates from
PepsiCo and other soft drink companies, and mix them with other
ingredients in our plants, including water, carbon dioxide and
sweeteners. Artificial sweeteners are included in the
concentrates we purchase for diet soft drinks. In addition to
soft drink concentrates, we buy juice concentrates for our Toma
and Sandora juice brands.

In addition to concentrates, we purchase sweeteners, glass and
PET bottles, aluminum cans, closures, paperboard cartons,
bag-in-box
packages, syrup containers, other packaging materials and carbon
dioxide. We purchase raw materials and supplies, other than
concentrates, from multiple suppliers. PepsiCo acts as our agent
for the purchase of several such raw materials (see
Related Party Transactions in Item 7 and
Note 22 to the Consolidated Financial Statements for
further discussion of PepsiCos procurement services).

A portion of our contractual cost of cans, PET bottles and
sweeteners is subject to price fluctuations based on commodity
price changes in aluminum, PET resin, corn and sugar. We
periodically use derivative financial instruments to hedge the
price risk associated with anticipated purchases of commodities.

The inability of suppliers to deliver concentrates or other
products to us could adversely affect operating results. None of
the raw materials or supplies in use is currently in short
supply, although factors outside of our control could adversely
impact the future availability of these supplies.

Raw Materials and Manufacturing

Expenditures for concentrates constitute our largest individual raw material cost. We buy various soft drink concentrates from PepsiCo and other soft drink companies, and mix them with other ingredients in our plants, including water, carbon dioxide and sweeteners. Artificial sweeteners are included in the concentrates we purchase for diet soft drinks. In addition to soft drink concentrates, we buy juice concentrates for our Toma and Sandora juice brands.

In addition to concentrates, we purchase sweeteners, glass and PET bottles, aluminum cans, closures, paperboard cartons,bag-in-box packages, syrup containers, other packaging materials and carbon dioxide. We purchase raw materials and supplies, other than concentrates, from multiple suppliers. PepsiCo acts as our agent for the purchase of several such raw materials (see Related Party Transactions in Item 7 and Note 22 to the Consolidated Financial Statements for further discussion of PepsiCos procurement services).

A portion of our contractual cost of cans, PET bottles and sweeteners is subject to price fluctuations based on commodity price changes in aluminum, PET resin, corn and sugar. We periodically use derivative financial instruments to hedge the price risk associated with anticipated purchases of commodities.

The inability of suppliers to deliver concentrates or other products to us could adversely affect operating results. None of the raw materials or supplies in use is currently in short supply, although factors outside of our control could adversely impact the future availability of these supplies.

Expenditures for concentrate constitute our largest individual
raw material cost. We buy various soft drink concentrates from
PepsiCo and other soft drink companies, and mix them with other
ingredients in our plants, including carbon dioxide and
sweeteners. Artificial sweeteners are included in the
concentrates we purchase

for diet soft drinks. The product is then bottled in a variety
of containers ranging from 8-ounce cans to 2.5-liter PET bottles
to various glass packages, depending on market requirements.

In addition to concentrates, we purchase sweeteners, glass and
PET bottles, aluminum cans, closures,
bag-in-box
packages, syrup containers, other packaging materials and carbon
dioxide. We purchase raw materials and supplies, other than
concentrates, from multiple suppliers. PepsiCo acts as our agent
for the purchase of several such raw materials (see
Related Party Transactions in Item 7 and
Note 20 to the Consolidated Financial Statements for
further discussion of PepsiCos procurement services).

A portion of our contractual cost of cans, plastic bottles and
fructose is subject to price fluctuations based on commodity
price changes in aluminum, PET, resin and corn, respectively. We
periodically use derivative financial instruments to hedge the
price risk associated with anticipated purchases of commodities.

The inability of suppliers to deliver concentrates or other
products to us could adversely affect operating results. None of
the raw materials or supplies in use is currently in short
supply, although factors outside of our control could adversely
impact the future availability of these supplies. During the
second half of fiscal year 2005, we experienced a shortage of
PET bottles in the U.S. that adversely impacted our volume
performance.

Expenditures for concentrate and packaging constitute our largest individual raw material costs. We buy various soft drink concentrates from PepsiCo and other
soft drink companies and mix them with other ingredients in our plants, including carbon dioxide and sweeteners. Artificial sweeteners are included in the concentrates we purchase for diet soft
drinks. The product is then bottled in a variety of containers ranging from 8-ounce cans to 2-liter plastic bottles to various glass packages, depending on market requirements.

In
addition to concentrates, we purchase sweeteners, glass and plastic bottles, cans, closures, syrup containers, other packaging materials and carbon dioxide. We purchase all raw materials and
supplies, other than concentrates, from multiple suppliers. PepsiCo acts as our agent for the purchase of such raw materials (see "Related Party Transactions" in Item 7 and Note 20 to
the Consolidated Financial Statements for further discussion of PepsiCo's procurement services).

A
portion of our contractual cost of cans, plastic bottles and fructose is subject to price fluctuations based on commodity price changes in aluminum, resin and corn, respectively. We use derivative
financial instruments to hedge the price risk associated with anticipated purchases of aluminum.

The
inability of suppliers to deliver concentrates or other products to us could adversely affect operating results. None of the raw materials or supplies in use is currently in short supply, although
factors outside of our control could adversely impact the future availability of these supplies. During the second half of fiscal year 2005, we experienced a shortage of polyethylene terephthalate
("PET") bottles in the U.S. that adversely impacted our volume performance.

Expenditures for concentrate and packaging constitute our largest individual raw material costs. We buy various soft drink concentrates from PepsiCo and other
soft drink companies and mix them with other ingredients in our plants, including carbon dioxide and sweeteners. Artificial sweeteners are included in the concentrates we purchase for diet soft
drinks. The product is then bottled in a variety of containers ranging from 8-ounce cans to two-liter plastic bottles to various glass packages, depending on market
requirements.

In
addition to concentrates, we purchase sweeteners, glass and plastic bottles, cans, closures, syrup containers, other packaging materials and carbon dioxide. We purchase all raw materials and
supplies, other than concentrates, from multiple suppliers. PepsiCo acts as our agent for the purchase of such raw materials (see "Related Party Transactions" in Item 7 and Note 20 to the
Consolidated Financial Statements for further discussion of PepsiCo's procurement services).

A
portion of our contractual cost of cans, plastic bottles and fructose is subject to price fluctuations based on commodity price changes in aluminum, resin and corn, respectively. We use derivative
financial instruments to hedge the price risk associated with anticipated purchases of aluminum cans.

The
inability of suppliers to deliver concentrates or other products to us could adversely affect operating results. None of the raw materials or supplies currently in use is in short supply, although
factors outside of our control could adversely impact the future availability of these supplies.